The gas price cut is to be applied retroactively as of July 1, 2013, according to reports of Greece's Energy Ministry, as cited by ekathimerini.com.

The new contract extends the existing agreement between the two gas companies by 10 years until 2026.

The two companies were in talks for the new contract for several months as DEPA sought a gas price cut by around 20%, threatening to refer the matter to arbitrage authority if the parties failed to reach agreement.

Under the new agreement, the Greek gas company will receive 2.5 – 3 billion cubic meters of natural gas a year.

The new agreement stipulates a price tag of below USD 400 per 1000 cubic meters, down from the USD 470 DEPA pays now, according to sources close to the matter.